(LiveMint)
JSW Steel Ltd, which is bidding for debt-ridden Essar Steel Ltd in alliance with Numetal Mauritius, may sell some of its stake to a private equity partner if it wins the auction, a top company executive said. rcelorMittal and Numetal were finalists in the Essar Steel bankruptcy auction, but the bankruptcy resolution professional disqualified both bids.
The firms moved the National Company Law Tribunal (NCLT), which allowed a second round of auction, while directing that the bids not be opened until the bench decides on the case. If the resolution plan submitted is approved by the committee of creditors, JSW Steel will invest in the step down subsidiary of Numetal.
“If the court decides lenders can go on with the second round of bidding (in Essar Steel) and Numetal becomes a successful bidder, we’ll see what can be done in the later stage, whether we bring in another investor,” Seshagiri Rao, joint managing director and group chief financial officer, JSW Steel, said in an interview.
